Governance & Financials
The Urban Improvements Precincts (RF) NPC comprises a board of non-remunerated directors who have a common vision and passion for the upliftment of the city and a general manager who manages the Council-approved precincts and is employed by the UIP Company.
The UIP is governed by the Companies Act, No. 71 of 2008. Precinct’s mechanisms are based on the Municipal Rates Policy 2013/14, which made provision for the establishment of UIPs, which from 1 July 2008, were termed Special Rating Areas (SRAs). The company’s Memorandum of Incorporation (MOI) outlines specific responsibilities of the board of directors, giving property owners peace of mind that their contributions are used for the purposes intended – allowing for transparency and visible accountability.
The Municipal Rates Policy 2013/14 (Item 9 – Special Rating Areas Policy) requires the municipality to approve an Annual Business Plan; Programme on Grant Funding and Budget for the service requirements of the defined UIP areas. The Special Rating Area Policy and the Memorandum of Agreement (section 67 of MFMA) of the municipality set out specific rules and regulations pertaining to the management of these areas.
Once the formation of the SRA is approved by Council, all property owners within its boundaries are required by law to contribute to the UIP Company to manage the SRA.
As a consequence of the introduction of The Companies Act of 71 of 2008, the Urban Improvements Precincts (RF) NPC (the company) on 26 September 2013 at the annual general meeting adopted a Memorandum of Incorporation without Members. The Stakeholders have agreed to regulate their rights and obligations and to record them in writing in the form of the Constitution of the Stakeholders of the Urban Improvements Association.